How 7-Figure Brands Can Win in Q3

**Richard Gaffin** (0:00)
Okay, yeah, actually, let's make that more explicit. So, okay, because Joy loves doing this so much. The next five CBG brands that reach out to us, so you can either email me, Richard at commonthreadco.com, you can comment on the YouTube channel, and Joy will do this for you for free. So reach out and we'll make that happen for you. This episode of the Ecommerce Playbook is brought to you by AppLovin.
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Hey folks, welcome to the Ecommerce Playbook Podcast. I'm your host, Richard Gaffin, Director of Digital Product Strategy here at Common Thread Collective. I'm joined today for another deep dive into the world of seven-figure e-commerce with Mr. Joy Sharma, who of course is our Director of seven-figure strategy here at Common Thread Collective. And Joy, what's going on, man?

**Joy Sharma** (1:28)
Everything is good.

**Richard Gaffin** (1:29)
Everything is good. Hey, that's what you want to hear. I know you're back home, right? Back in Dubai? Is that right? Yes. So for those who don't know, Joy has been itinerant for some time here and he's finally back home. He's got his professional set up. So we're glad to see that. But we're going to go ahead and jump into, as always, a really interesting and very specific topic here for seven-figure brands. We're thinking through the idea of how seven-figure brands can win in Q3. We talked about that a little bit, I believe last week with Randall when we talked about our Cashmas in July program. This is a very crucial time Q3 to prep for Q4. And so we're going to talk a little bit about what it looks like for a seven-figure business to do that. And Joy is a sort of put together essentially a two-step process to basically, like the sort of most important two steps that you can take, I think is a seven-figure brand, to prep or put yourself in the right position for Q4. So, Joy, why don't you talk a little bit through your thought process with this kind of two-step process and then we'll go from there.

**Joy Sharma** (2:31)
It's like the same idea. The one thing is like the one thing I can do in this quarter to double my business. And I think it's a two-step process and figuring out what that is.
But the answer to that is number one thing that as we take on more clients and see more P&Ls and their stablize accounts and stuff like that. What we're starting to realize is that people are just optimizing for the wrong thing. And that's why this two-step process is important, which is step one is basically you need to understand the game you you should be playing. It's not even like what I want to play. It is like what I should be. And the way you calculate that is basically there is a story that I think Taylor used to say a few years back. So like if I'm a deodorant company, like I'm not bidding against people like who just randomly try new deodorants every month. There are people, like the people I'm bidding against are like people who just want Old Spice. They have been using that for 10 years. They're gonna continue to use it every month. And the amount of times I will need to show an ad to that customer is going to be very high. That's why my cost of hire that customer will naturally be high. I'm in an industry where, first of all, my competition understands how sticky that product is. So they all are bidding very high CPAs. And CPS is basically, end of the day, the reason a CPA is high is basically meta doesn't charge them CPAs, they charge them impressions. So a high CPA just means you need to show that a lot of times to a person. So in that particular instance, which is like if he's using Old Spice for 20 years or 10 years, if you do convince the person to go and buy from you, he will have a high LTV.